Counterterrorism Blog

Congress held two hearings this last week aimed at learning more about the flow of money into Iraqi insurgency hands. One dealt with Syria and the oil for food program (where I had the opportunity to testify). The other was entitled "Who Pays the Iraqi Insurgents?” The presentations at both these hearings made it clear that substantial funds were available and being used by Iraqi insurgents, and possibly for other terrorism activities outside Iraq. According to US military assessments, funds now available to Iraqi insurgents are sufficient to sustain the insurgency indefinitely. Cutting off this funding has, therefore, become a critical element in our counter-insurgency strategy. This funding, according to Caleb Temple, a senior DIA intelligence officer DIA Senior Analyst testifying at the latter hearing, comes principally from wealthy private donors in the Middle East and elsewhere, as well as former elements of Saddam Hussein's Baathist regime. Many of Saddam’s cronies fled to Syria, Jordan, Iran, Saudi Arabia, the United Arab Emirates and other countries, he said, where they have established financial bases to support the insurgency. The funds are transferred back to Iraq via cash couriers. They also use certain charities as collection and distribution fronts by mixing money for the insurgency with funds for legitimate humanitarian projects.

This writer also believes that Saddam's hidden money continues to fund many of the diverse groups engaged in terrorism in Iraq and elsewhere. This includes Jihadi groups, as well as Baathist insurgents in Iraq. Some experts speculated at the time of the first Gulf War that Saddam had over $5 billion stashed away in addition to the $5 billion Iraqi assets located at that time. Since then, Saddam and his cronies may have raked in more than $7-10 billion through various schemes, kickbacks, extortions, and other illicit methods. The oil for food scams were only one such source of Saddam’s money. And very little of this money has yet been accounted for. Some $1.9 billion has been returned to Iraq. The State Department estimates that there is still some $1 billion in known Iraqi deposits that have not been returned to Iraq. Most of this is in bank accounts in Switzerland, the United Kingdom and Syria. The Commercial Bank of Syria still holds a reported $262 million dollars in SOMO-related accounts.

These figures leave a considerable amount of funds and other assets unaccounted for. How much was spent by Saddam and his agents during the last decade remains a matter of speculation. Some may still be locked up in business and other investments around the world, and some in as yet unidentified numbered bank accounts. A good part of the funds may also have been dissipated by those who believe they are no longer be beholden to Saddam and the Baathist regime. But, one way or another there remains a nice kitty upon which those favoring the insurgency and terrorism against the United States, Great Britain and other members of the Operation Iraqi Freedom coalition can draw.
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